Newsroom

OFT helps consumers shop with confidence

TV's Amanda Holden launches codes logo scheme

187/05    5 October 2005

'Buy with confidence when you see this sign' is the message the OFT is sending out today at the national launch of its new Consumer Codes  Approval Scheme logo. The logo will help consumers choose businesses that are committed to delivering higher standards of customer service than the law requires.

Amanda Holden, actress and TV celebrity, is spearheading the launch of the OFT Approved code logo, which acts as a signpost for consumers. It means that businesses displaying it have signed up to an OFT approved consumer code of practice (see note 1).

Recent research commissioned by the OFT shows that over 75 per cent of consumers would value a logo to help them choose fair-dealing businesses. Clear information on costs was thought very important by 80 per cent of consumers. 70 per cent also want procedures to deal quickly and simply with complaints. Clear information before making a purchase and fair handling of complaints are at the heart of the OFT approval scheme.

Consumers buying a wide range of products and services from package holidays to homes, car warranties, car body work repairs and those buying goods in their homes, can now be confident they will to be treated fairly where they see the OFT Approved code logo.

OFT approved codes ensure consumers receive:

• clear information about the goods or services being purchased
• a straightforward, quick and easily understandable customer complaints process with access to independent redress if necessary
• clear and fair contract terms
• additional effort/help if they are vulnerable
• protection for customers deposits or prepayments if a business ceases to trade.

A code sponsor only receives OFT approval for its code after evidence has been provided to show that it is effective and delivers genuine benefits to consumers.

The OFT will continue to monitor the performance of the code and code sponsors, for example, by assessing how effectively complaints are resolved and whether code sponsors take steps to ensure that members are complying with the code. The OFT can also withdraw approval from a code sponsor should it fail to police its members effectively.

Consumers can use the OFT website to find businesses in their post code area that are signed up to an OFT approved code as well as details of the code of practice and contact details for the relevant code sponsor (see note 2).

Penny Boys, OFT Executive Director, said:

'Consumers want to know that they are buying from fair-dealing businesses. The OFT approved code logo will give them that confidence and become a widely-recognised brand as more code sponsors sign up to its rigorous standards of customer service.'

Consumer Minister, Gerry Sutcliffe, said:

'It is great news for consumers that the OFT's logo can signpost consumers to companies that go above and beyond the legal requirement in customer service. I hope that the system will grow and that more and more business sectors will see the consumer confidence the approved logo can bring.'

NOTES

1. To date the trade bodies that have secured OFT approval for their codes are the Association of British Travel Agents (ABTA), Ombudsman for Estate Agents Company Limited (OEA), Direct Selling Association (DSA), Society of Motor Manufacturers and Traders (SMMT) and the Vehicle Builders and Repairers Association Ltd (VBRA).

2. The businesses covered by the scheme, the details of the relevant code and feedback forms are available on the OFT codes website.

3. The Society for Motor Manufacturers and Traders (SMMT) received approval on 27 September 2004 (see press release  153/04), the Vehicle Builders and Repairers Association Ltd (VBRA) received approval on 13 October 2004 (see press release 169/04), the Direct Selling Association (DSA) on 16 December 2004 (see press release 209/04), the Ombudsman for Estate Agents on 8 September 2005. and the Association of British Travel Agents received approval on 29 September 2005. Code sponsors that have completed stage one and are working towards approval for their code are: MVRA Ltd (formerly the Motor Vehicle Repairers Association) (see press release 09/05), the Debt Managers Standards Association (see press release 121/05) and the Carpet Foundation (see press release 158/05).

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